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Article
Determining the optimal size of local government: the case of Tasmanian councils
Australian Journal of Public Administration
  • Rui Cunha Marques, University of Lisbon
  • Michael A Kortt, Southern Cross University
  • Brian Dollery, University of New England
Document Type
Article
Publication Date
1-1-2015
Peer Reviewed
Peer-Reviewed
Abstract
We estimated the optimal size of the most significant functions performed by Tasmanian councils between 1999 and 2008 using a non-parametric technique based on the shared input data envelopment analysis model. The principal advantage of this technique is that it not only provides an overall estimate of efficiency but it also allows for the estimation of ‘partial efficiencies’ and ‘cost shares’ when one input is shared among multiple outputs. Our results indicate that water supply and sewerage services, on average, were more efficient, whereas activities related to community health and safety and information systems warrant improvement. However, because the costs associated with water supply and sewerage services are considerably higher than the costs related to community health and safety and information systems, the elimination of these inefficiencies would result in greater cost savings for the Tasmanian local government sector.
Disciplines
Citation Information

Marques, RC, Kortt, MA & Dollery, B 2015, 'Determining the optimal size of local government: the case of Tasmanian councils', Australian Journal of Public Administration, vol. 74, no. 2, pp. 212-226.

Published version available from:

http://dx.doi.org/10.1111/1467-8500.12151